The foreign exchange rate is NOT

Related MCQs

• If the exchange rate is above the equilibrium level then in a floating exchange rate system:
• If the exchange rate is below the equilibrium level then in a floating exchange rate system:
• Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?
• Suppose Mexico and the United States were the only two countries in the world. There exists anexcess supply of pesos on the foreign exchange market. This suggests that:
• The quantity of dollars supplied to the foreign Exchange market would increase if, other things remaining equal:
• The Federal Reserve raises interestrates. What happens in the foreign Exchange market?
• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• The Exchange rate is kept the same in all parts of the market through
• Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies.
• __________ is the deliberate downward adjustment in the official exchange rate, reduces the currency's value.